Logistics

IoT and Its Impact on the Road Freight Industry

The Internet of Things (IoT) has gained momentum within the road freight industry over the past few years. IoT is defined as the internetworking of physical devices, also referred to as “connected devices” and “smart devices,” that enables the objects to collect and exchange data. According to a DHL and Cisco Trends report, IoT utilization in the supply chain and logistics industry could generate USD 1.9 trillion in value by 2025, out of the overall USD 8 trillion in IoT value generated globally.

Will Logistics Consolidation Accelerate in 2017?

A wave of mergers and acquisitions reshaped the logistics industry in 2016. With enterprises viewing it as a strategy to reduce debt or to add capacity, a string of acquisitions, especially in Q2 2016, kept the industry buzzing. In October last year, TransForce completed the acquisition of XPO Logistics’ truckload business Con-Way Truckload, and Truckload carrier Schneider announced the acquisition of Watkins & Shepard Trucking and final-mile delivery carrier Lodeso in June. Toward the end of August, Hanjin Shipping filed for bankruptcy protection, after months of trying to raise liquidity and restructure its debt.

Effective Reverse Logistics for Managing Increasing Apparel Returns

Returns of retail merchandise have grown by 66% in the past five years, supported by a steep increase in e-commerce. US apparel sales through e-commerce grew by staggering 19.7% in 2015, compared to 1.1% in-store sales. The National Retail Federation reported an average return rate of 11% for apparel retail in 2015, with a 20% increase in returns during the holiday season.

Ocean Freight Trends and Outlook for 2017

The year 2016 was tumultuous for the global shipping industry, as carriers were prone to financial pressures. This was true especially the first three quarters of 2016, due to factors such as freight rates dipping to their lowest levels since 2009, M&A, new alliances and the Hanjin bankruptcy, one of the largest container shipping bankruptcies in history. In 2017, however, ocean freight rates are forecast to increase due to factors such as supplier consolidation, increase in bunker prices and slower capacity growth. However, we believe that ocean freight rates will remain moderate due to the uncertain global economic environment.

European Warehouse Market Trends and 2017 Outlook

E-commerce and online retail are major drivers for the increase in demand for different types of warehouses ꟷ such as mega fulfillment centers (merchandise storage and pick-up), parcel sorting centers, local parcel delivery centers, dot.com warehouses (fulfillment of online orders), return processing centers and local delivery centers (for same-day deliveries).

European CEP Market and Carriers Pricing Trends

CEP (Courier, Express and Parcel) are non-palletized products with shipments weighing less than 50 kg/110 lbs. Parcel shipments predominantly travel via ground transport and are delivered in a day or two, whereas express shipments travel by air, which is a time-bound delivery. Today, there is a thin line between Courier, Express or Parcel services. These three terms are commonly amalgamated to Courier-Express-Parcel (CEP) services.

Hanjin Shipping Files for Bankruptcy Protection

Hanjin Shipping Line has filed for receivership having lost the support of their creditors. This is causing a ripple effect across the globe and shippers should take note.

Trends in the U.S. Warehouse Market

The U.S. warehouse market saw lower completions than net absorption over the past 6 years. Now, for the first time since the downturn in 2009, the market will see an equal amount of new space added and absorbed.

A Perspective on Refrigerated Container Trade Growth

The refrigerated container market has been growing at a healthy pace over the past few years. With specialized reefer capacity expected to fall further, the growth in demand for refrigerated container capacity is expected to outpace the growth for dry container slots.

Brexit’s Potential Impact on Logistics

Markets around the globe are in turmoil following Britain’s decision to leave the European Union. The British Pound came down more than 11%, stocks fell, and government bond yields entered uncharted territory.

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